Competitiveness assessment and mix of allocation analysis under the Mexican Emissions Trading System (ETS)

The project involved the following aspects:

· Competitiveness analysis addressing to what extent the presence of a Mexican ETS and a related carbon price could potentially create competitiveness and carbon leakage risks for the covered sectors under the Mexican ETS

· Allocation methodologies scenarios and allocation tool with the objective of presenting the advantages and disadvantages of 3 allocation methods scenarios for the formal phase of the Mexican ETS enabling the decision-making process of SEMARNAT and providing a tool for the automatic calculation of the allocation of emission rights for the Mexican ETS.

· A benchmark feasibility analysis to identify if certain benchmarking approaches could be developed for the Mexican ETS in its formal phase, considering the Mexican context in relation to data availability and industrial technological aspects (e.g. homogeneity of production processes and products produced).